On-Chain Real-World Assets Market Grows But Remains Fragmented

p>The on-chain real-world assets (RWA) market has seen significant growth in mid-2026, with distributed tokenized equity values almost doubling from $951 million in March to $1.89 billion in July. However, this expansion is largely driven by a small number of products and platforms, highlighting the sector's limitations.

According to RWA.xyz data, the most notable advancements come from regulated market infrastructure, particularly Nasdaq's same CUSIP settlement model and DTC plan commercialization. Despite increased flow and distribution, liquidity remains limited in this space. Tokenized bonds show stronger product-market fit compared to stock ETFs, which may be easier to scale than individual stocks.

Experts consider the RWA market a 'second 2.5 layer' system, where robust legal foundations often correspond with weak distribution capabilities and vice versa. The sector's complexity arises from its dual nature: some products are designed for widespread adoption, while others prioritize real-world ownership rights.

Offshore products have improved cross-chain flow and decentralized market usability since March. Ondo extended its presence to Ethereum, BNB Chain, and Solana, introducing decentralized routing and partial continuous minting and redemption capabilities. xStocks expanded its distribution channels and integrated with other platforms.